Investment updates

Change in Benchmark for International Equity Fund (AGF)

Effective December 2013, the benchmark for the Manulife International Equity Fund (AGF) has changed. The rationale for the change from the MSCI EAFE Total Return Index to the MSCI EAFE + EM Index is as follows:

• The MSCI EAFE Index is an equity index which captures large and mid-cap representation across Developed Markets countries around the world, excluding the US and Canada.
• Given the broad investment mandate of the fund, the benchmark change, which now adds Emerging Markets exposure, better reflects AGF’s changing view of investing in today's globalized economy.
• The MSCI EAFE + Emerging Markets (EM) Index is an equity index which captures large and mid-cap representation across 22 Developed Markets countries and 21 Emerging Markets Countries around the world.

The AGF International Stock Class is the underlying fund for the Manulife International Equity Fund (AGF).

Important Change at AGF Investments Inc

Effective June 17, 2014, Kevin McCreadie will be appointed President and CIO of AGF Investments Inc. He was most recently the President and CIO of PNC Capital Advisors, LLC, a US financial services firm. AGF is the investment manager for the Manulife Emerging Markets Fund (AGF) and the Manulife Global Equity Fund (AGF).

The AGF Emerging Markets Equity and the AGF Global Equity Class are the underlying funds for the Manulife Emerging Markets Fund (AGF) and the Manulife Global Equity Fund (AGF), respectively, both available on the Quality & Choice investment platform.

Retirement of Managing Director of Fixed Income at Beutel Goodman

We have been informed by Beutel, Goodman & Company Ltd. that the Managing Director of Fixed Income, Bruce Corneil, will be retiring from the firm effective March 31, 2015. Beutel Goodman is the investment manager for the Manulife Fixed Income Fund (Beutel Goodman).

Going forward, the fixed income team will be headed up by David Gregoris, CFA, who has worked alongside Mr. Corneil since 1994 and has been instrumental in adding value in his roles as portfolio manager and strategist.

The Beutel Goodman Income Fund is the underlying fund for the Manulife Fixed Income Fund (Beutel Goodman).

New Restrictions Regarding the Canadian Equity Fund (Beutel Goodman)

We have been informed by Beutel, Goodman & Company Ltd. that the fund manager will be imposing new restrictions for the Beutel Goodman Canadian Equity Fund. Beutel Goodman is the investment manager for the Manulife Canadian Equity Fund (Beutel Goodman)

In late 2012, Beutel Goodman had announced that the fund was closing to DB clients as well as putting limitations on the size of investments from DC clients. Effective immediately the fund will no longer be offered to new clients and outstanding commitments will be honoured until July 31, 2014. This announcement does not impact existing Manulife clients currently invested in the Canadian Equity Fund (Beutel Goodman) and all existing clients will be able to continue investing into the fund.

At the same time, we will be adding the Beutel Goodman Fundamental Canadian Equity Fund to the Investment Watch (i-Watch®) as an alternative. This pooled fund is similar except it excludes the small cap component. It is comprised of 20-45 Canadian equity securities with market capitalizations greater than $1.5 billion. This new fund is only available to DC plans. Also, any investment greater than $50 million into this new fund would be subject to approval by Beutel Goodman.

For other alternatives with the same investment management style (value) that are available to both DC and DB plans on the Quality & Choice Investment Platform, there are also the Canadian Equity Fund (Foyston, Gordon & Payne) and the Canadian Value Equity Fund (SLI).

The Beutel Goodman Canadian Equity Fund is the underlying fund for the Manulife Canadian Equity Fund (Beutel Goodman).

Fidelity Investments Announces Senior Appointment to Global Asset Allocation Group

In March 2014, Fidelity Investments (Fidelity) announced that, effective March 7, 2014, David Wolf, a former policy advisor to the Governor of the Bank of Canada, will be joining the Fidelity Canadian Asset Allocation portfolio management team. Mr. Wolf has been named as portfolio manager alongside Geoff Stein and Derek Young in managing the Manulife Canadian Asset Allocation Fund (Fidelity). Mr. Wolf has been working with the Global Asset Allocation team since joining Fidelity in September 2013.

Derek Young will continue in his role as a portfolio manager alongside Geoff Stein and David Wolf until March 31, 2014. At that point Mr. Stein will become the lead portfolio manager on these funds, with Mr. Wolf as co-portfolio manager. Mr. Young will continue as President of Fidelity’s Global Asset Allocation division.

The Fidelity Canadian Asset Allocation Fund is the underlying fund for the Manulife Canadian Asset Allocation Fund (Fidelity) available on the Quality & Choice Investment Platform.

Foyston, Gordon & Payne Inc. Announces Changing of President

In December 2014, Foyston, Gordon & Payne Inc. (FGP) announced that the President, Jim Houston, will be leaving the firm effective December 31, 2014. Bryan Pilsworth, Vice-President and Portfolio Manager, Canadian Equities is assuming Mr. Houston’s role on January 1 both as President and as secretary on FGP’s Board of Directors.

The FGP International Equity Fund, FGP Canadian Equity Fund and the FGP Balanced Fund are the respective underlying funds for the Manulife International Equity Fund (Foyston, Gordon & Payne), Manulife Canadian Equity Fund (Foyston, Gordon & Payne) and the Manulife Diversified Fund (Foyston, Gordon & Payne).

New Restrictions Regarding the Canadian Equity Growth Fund (Guardian)

We have been informed by Guardian Capital that the fund manager will be imposing new restrictions for the Guardian Canadian Growth Equity Fund. Guardian Capital is the investment manager for the Manulife Canadian Equity Growth Fund (Guardian).

Effective January 1, 2015 the fund will no longer be offered to new clients. This announcement does not materially impact existing Manulife clients currently invested in the Canadian Equity Growth Fund (Guardian) as all existing clients will be able to continue investing into the fund. However, any investment greater than $10 million would be subject to approval by Guardian Capital.

For an alternative investment fund with the same investment management style (growth) available to plans on the Quality & Choice Investment Platform, there is the Canadian Equity Growth Fund (CC&L).

The Guardian Canadian Growth Equity Fund is the underlying fund for the Manulife Canadian Equity Growth Fund (Guardian).

Fund change notice

In July 2014, Jarislowsky Fraser Limited announced that their US Equity Fund will be opened to non-registered investors as of October 1, 2014.

The Jarislowsky Fraser US Equity Fund is the underlying fund for the Manulife US Equity Fund (Jarislowsky Fraser) available on the Quality & Choice Investment Platform.

Jarislowsky Fraser Announces Senior Appointments to North American Equity Team

In February 2014, Jarislowsky Fraser Limited (Jarislowsky Fraser) announced that Bernard Gauthier has been appointed Head of Canadian Equities following the departure of Helen Beck. He has been a member of the Investment Strategy Committee since 2012 and will now work closely with Charles Nadim, who was named Canadian Equity portfolio manager in 2012. Ms. Beck will continue to work with Mr. Gauthier, Mr. Nadim and the existing team for the following few weeks to ensure a smooth transition. Also, Dan Hanson, who was co-managing US equities with Bernard Gauthier, has been appointed Head of US Equities.

The Investment Program Team has been in discussions with the Jarislowsky Fraser investment management team, evaluating the impact that these developments will have on the stability of the investment management team and the investment process.

The Jarislowsky Fraser Balanced Fund, Jarislowsky Fraser Canadian Equity Fund and Jarislowsky Fraser US Equity Fund are respectively the underlying funds for the Manulife Balanced Fund (Jarislowsky Fraser), Manulife Canadian Equity Fund (Jarislowsky Fraser) and Manulife US Equity Fund (Jarislowsky Fraser) available on the Quality & Choice investment platform.

CIO Succession at PIMCO

We have been informed by PIMCO that following the resignation of Bill Gross on September 27, 2014, the firm’s Managing Directors have elected Daniel Ivascyn as Group Chief Investment Officer. In addition, the firm appointed Andrew Balls, CIO, Global and Mark Kiesel, CIO, Global Credit. PIMCO is the investment manager for the Manulife Canadian Core Plus Fund (PIMCO).

As Group CIO, Daniel Ivascyn will continue to oversee the firm’s alternatives, structured credit and income strategies. These changes and appointments are effective immediately.

The PIMCO Canada Canadian CorePLUS Bond Trust is the underlying fund for the Manulife Canadian Core Plus Bond Fund (PIMCO).

Pyramis Global Advisors announces President change

In October 2014, Pyramis Global Advisors (Pyramis) announced that Jeff Lagarce has been appointed as president. Mr. Lagarce will be succeeding Mike Jones who will leave the firm at the end of the year.

In his role, Mr. Lagarce will be responsible for strategic oversight of the Pyramis organization, including investment management and North American distribution and relationship management. He will report to Charlie Morrison, president of Asset Management for Fidelity Investments.

The Pyramis Canadian Core Equity Trust and the Fidelity ClearPath Institutional Portfolios are the underlying funds for the Manulife Canadian Equity Fund (Pyramis) and the Manulife ClearPath Institutional Funds (Pyramis), respectively, available on the Quality & Choice Investment Platform.

Pyramis Global Advisors announces ClearPath Portfolio Manager change

In January 2014, Pyramis Global Advisors (Pyramis) announced that Brett Sumsion will be joining their Target Date Team as Co-Portfolio Manager effective January 21. Following the appointment of Mr. Sumsion, Chris Sharpe will no longer be a Co-Portfolio Manager on the target date strategies. Throughout the course of the first quarter, Mr. Sharpe will be transitioning off the target date strategies.

The Fidelity ClearPath Institutional Portfolios are the underlying funds for the Manulife ClearPath Institutional Funds (Pyramis) available on the Quality & Choice investment platform.

Russell Investments acquired by London Stock Exchange Group

In June 2014, it was announced that London Stock Exchange Group (LSEG) had reached an agreement with Northwestern Mutual to purchase Russell Investments. Over the coming months, LSEG and Russell will work together to obtain the necessary approvals for this acquisition with a targeted transaction close date in late 2014 or early Q1 2015, subject to the necessary shareholder and regulatory approvals.

The Russell LifePoints Balanced Growth, Balanced Income and Long Term Growth Portfolios (all Series A) are respectively the underlying funds for the Manulife LifePoints Balanced Growth, Balanced Income and Long-Term Growth Portfolio Funds (Russell), all available on the Quality & Choice investment platform.

Manulife Mutual Funds Limited announces name change

On November 3, 2014, Manulife Mutual Funds Limited announced that the International Bond Fund changed its name to the Global Bond Fund. This change was made to align the name of the fund with the North American definition of a “global” fixed income portfolio which includes investments in Canada and the United States.

As a result of this announcement the name of the following Manulife fund offered on the Quality & Choice Investment Platform will change on February 1, 2015: